Chris Walker, general manager for tablet processors at Intel, told US tech news website CNET that upcoming Android tablets would be undercutting Apple's iPads by hundreds of dollars, and would run a next-generation version of Atom.

Intel is obviously banking on a rise in Android tablet purchases, it released the Intel C++ Compiler for Android OS back in August. Developers can use the compiler on Linux-based systems to create apps for Android devices based on Intel processors, including the Atom processor.

Walker told CNET while Intel Atom chips run both Windows and Android, "the low price points should be Android."

The release date for the next-generation Atom processors is currently unknown, however Intel said its low-cost tablets would not be running the already announced 'Bay Trail' processors, which are on the way shortly.

Intel said at its Developer Forum keynote at San Francisco that upcoming 'Bay Trail' tablets, made using Intel's 22-nanometer process technology, will see better battery life and better performance as compared to currently existing tablets that run using Intel Clover Trail or Clover Trail+.

 Intel Engineer Francois Piednoël tweeted late last week:

#baytrail is about to change the game in #tablet , there are plenty more surprises to come, Process tech is key... pic.twitter.com/zFG3xafnXH

— Francois Piednoel (@FPiednoel) September 4, 2013